Some have argued that the reserves no longer exist in practical terms. [1] [1] http://www.ny.frb.org/research/epr/02v08n1/0205benn/0205benn.html http://www.ny.

Some have argued that the reserves no longer exist in practical terms. [1] [1] http://www.ny.frb.org/research/epr/02v08n1/0205benn/0205benn.html http://www.ny.frb.org/research/epr/02v08n1/0205benn/0205benn... tl;dr "They attribute the diminished force of the requirements largely to the spread of "sweep" arrangements—a banking innovation that allows depository institutions to shift funds out of customer accounts subject to reserve requirements."